For investors who have just come into contact with 50ETF options, it is easy to ignore that its exercise method is European-style, and it must be exercised only on the expiration date, and its delivery method is physical delivery. Options Trading Options Diary SSE 50 ETF Options
50 ETF options are based on physical ETF shares. When the contract expires and the obligee decides to exercise the option, the obligee and the obligor trade in cash and ETF shares, rather than the net cash value. When the contract expires, the buyer of the option must decide whether to exercise the option and make an exercise declaration before 15:30 p.m. on the exercise date (the expiration date of the option contract). The seller will know the result of the assignment by the end of the day.
The expiration date of 50ETF options is on the fourth Wednesday of the expiration month, which will be extended if it falls on a statutory holiday. The exercise date is the same as the expiration date of the contract, and the submission time of the exercise order is similar to the usual trading time, but there will be an extra half hour from 3 to 3:30 in the afternoon; As for this settlement day, it should be noted that it is the next trading day of the exercise date, that is, it will be settled on the next trading day of the exercise date.
For example, the expiration date of the 50 ETF option contract expiring in June 2022 is the fourth Wednesday of June, that is, June 29, which is also the exercise date and last trading day.
Do the right thing at the best time, it is very common to lose money in the investment process, some investors will be afraid of this kind of thing in their hearts, become afraid of option investment, even if they encounter a good opportunity to invest, they do not dare to make a decision easily, hesitate, look ahead, for fear of making mistakes again, but if you want to make a profit, a certain risk must be taken, so as to grow up quickly.
The trading methods of 50ETF options mainly include the following:
1. Open a position: i.e., a 50ETF option contract, pay the corresponding premium. When the market is ***, the premium will also be corresponding**, so as to achieve profit.
2. Sell to open a position: that is, sell a 50ETF option contract and receive the corresponding premium. When the market is ***, the premium will also be corresponding**, and it is even possible to lose the entire premium.
3. Liquidation: Hedging the original option contract through reverse trading, so as to withdraw from the option transaction.